The Cost of Living — Most Spend Half Annual Income on House Bills

DOXO is a firm that helps people manage their income. The company issued a report last week noting the average American worker will spend 47% of their annual income to run their household. 

The 2026 median annual income is about $84,583. That means the average person spends $39,468 on bills to run the house. Of that amount, $27,997 is spent on the most essential items and cannot be changed. 

Here’s the list, these are per month averages: 

• Mortgage — if you own a house: $1,769
• Renters — if you rent: $1,453
• Auto loans: $480
• Auto insurance: $108
• Electricity: $125
• Cable and the internet: $124
• Mobile phone: $98
• Water: $98
• Sewer: $87
• Health insurance: $80
• Life insurance: $60
• Security and alarm: $76
• Gas: $71
• Waster & recycling: $71 

Looking at auto insurance, DOXO predicts premiums will rise in a third of the nation’s states in the first half of this year. That’s on top of premiums that rose 3% from 2024 to 2025 and that rose a staggering average of 18% in 2023. 

In total, the average driver pays about $2,256 each year for auto insurance premiums. 

TheZerbra.com Chief Commercial Officer David Seider said, at the same time, the average homeowner will pay $2,543 per year for homeowners insurance.      

"Consumers face double‑digit increases in many ZIP codes,” Seider said. "Inflation is raising rebuilding and repair costs; a growing number of insurers are pulling back from high‑risk areas; and extreme weather events are causing soaring claims.” 

He expects rates to continue to rise. 

"As homes age and climate‑driven disasters mount, we expect premiums to continue to rise,” Seider concluded. “By shopping around, comparing their options, bundling insurance, and even investing in home resilience improvements, savvy homeowners can limit cost shocks and better protect their coverage in this ever-shifting market.” 

Source link: PropertyCasualty360.com — https://www.propertycasualty360.com/2026/03/06/the-average-american-now-spends-nearly-half-their-annual-income-on-house-bills/?kw=The%20Average%20American%20now%20spends%20nearly%20half%20their%20annual%20income%20on%20house%20bills&utm_position=5&utm_source=email&utm_medium=enl&utm_campaign=dailynews&utm_content=20260306&utm_term=pc360&enlcmp=nltrplt2&oly_enc_id=5212C5524589E2Z&user_id=ba8d3aed6a3706fca3767a411c1296ec4fd96d442f730d397b69f65b0ce0431d